Credit Rating to Effect Insurance Coverage?

Something that came to my attention a while ago had rocked me to the core.

I will, in later posts when I have more time, be discussing the different regulations that have effected the policy holders in Ontario in many ways. However, I'd like to point out a new way which the Insurance Companies are going to be using to get even more money out of people.

Introducing: Credit score to be used by Insurance Companies:

Explanation:The Credit Scoring Working Group is reviewing and examining the issues and options around the use of credit scoring models in underwriting and other ways that insurers use data from credit rating agencies. The working group reports the results of its review to the CCIR, whose individual members may apply these as they consider appropriate.

What does this really mean: If one was to read the document that I am posting below one would find out that basically Insurance Companies are considering using credit ratings as an additional way to hike up the fees on their clients for Insurance coverage, however this time it's beyond ridiculous.

Person A: Great driving record but made a few bad financial decisions and therefore has a lower credit rating.

Person B: Has lot's of money, but isn't that great of a driver.

Person A if this comes into effect: Rate goes up to be punished for bad financial decisions and has to pay a higher rate.

Person B if this comes into effect: Nothing changes, good credit score helps keep Insurance costs down.


Source:
http://ccir-ccrra.org/en/init/Credit_scor/Credit_Scoring.asp

http://ccir-ccrra.org/en/init/Credit_scor/Stakeholder_Submissions_Issues_Paper_Credit_Scores_2011.pdf
This link is the 91 page stakeholder report.

The reason these things are passed is because no one has the money or expertise to contest it.